Investors Acquiring Gold Futures Contracts

question 17

Multiple Choice

Investors acquiring gold futures contracts

• A)do not have to meet margin requirements
• B)may anticipate an increase in inflation
• C)are considered to have unleveraged positions
• D)have less speculative positions

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Definitions:

Current Liability

Financial obligations or debts that are due to be paid within a year or within the normal operating cycle of a business.

GAAP

Stands for Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, including the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.

Compensated Absences

Employee benefits representing paid time off, such as vacation, sickness, or personal leave, accrued by employees.

Vacation Pay

A benefit offered by employers that compensates employees while they are on leave from work for a vacation.